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GVSU economist: Local economy looks strong for 2018

Posted on December 06, 2017

The West Michigan economy looks strong for the new year, according to
a Grand Valley State University expert.

"We are heading into 2018 with a full head of steam," said
Brian G. Long, director of Supply Management Research in the Seidman
College of Business. "I don't see anything on the horizon that
will trip us up."

Long surveyed local business leaders and his findings below are based
on data collected during the last two weeks of November. See
the full report here.

The survey's index of business improvement (new orders) rose to +20
from +11. The production index backtracked slightly to +17 from +20.
The index of purchases eased to +18 from +22, and the employment
stayed positive at +13, down slightly from +14.

Long said the November performance for most groups was mixed.

"Despite the modest softening in auto sales, the local
auto parts producers remain surprisingly strong, even though they
continue to voice concern about possible slower auto sales as we head
into 2018," he said. "It is currently the slow season for
office furniture sales, and the industry still appears to be topping
out at the present level."

Long said some of the smaller office furniture firms are still
expanding, and for most industrial distributors, November was one of
their better months. "A plateau seems to be forming for the
capital equipment industry, but recent proposed changes in the tax
law could result in improved conditions in 2018," he said.

The Institute for Supply Management survey is a monthly survey of
business conditions that includes 45 purchasing managers in the
greater Grand Rapids area and 25 in Kalamazoo. The respondents are
from the region's major industrial manufacturers, distributors and
industrial service organizations. It is patterned after a nationwide
survey conducted by the Institute for Supply Management. Each month,
the respondents are asked to rate eight factors as "same,"
"up" or "down."